Palladium Equity Partners has agreed to sell ABRA Auto Body & Glass, an auto repair business, to Hellman & Friedman and ABRA’s management team. The deal is expected to close in the third quarter.
ABRA Auto Body & Glass, (“ABRA”), a leading national damaged vehicle repair provider, and its principal owner, Palladium Equity Partners, LLC. (“Palladium”), is pleased to announce today a definitive agreement for ABRA to be acquired by affiliates of Hellman & Friedman, LLC. (“H&F”) along with ABRA’s senior management team.
ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement. The company uses an operational excellence philosophy that significantly improves its operating metrics which distinguishes itself from competitors. ABRA provides repair solutions that enable its insurance company partners to improve customer satisfaction and drive policyholder retention, while reducing repair costs and driving efficiencies in the claims process. ABRA’s nationwide network includes 186 company-owned vehicle damage repair centers and 48 franchised centers in 19 states.
“It is with the dedicated work of our employees, the trust of our customers, and the tremendous support of our insurance partners that ABRA has become an iconic name in auto body and glass repair in the three decades since its founding,” said Duane Rouse, president and chief executive officer of ABRA. “Hellman & Friedman brings deep insurance and automotive service industry expertise and an exemplary record of helping companies such as ABRA continue to evolve and grow. We look forward to working together to build on our track record of success.”
“Within the $30-billion collision repair sector ABRA stands out as a highly-respected, exceptionally well-run business,” said Erik Ragatz, managing director of Hellman & Friedman. “Built on a foundation of delivering superior standards for repair quality and customer service, ABRA has become a trusted partner of leading automotive insurers and a reliable source for quality collision repair services across the nation. We see outstanding growth prospects ahead and look forward to partnering with ABRA’s team to continue to execute on their strategic plan.”
Luis Zaldivar, Managing Director of Palladium, said, “We are proud to have been part of ABRA’s successful growth over the past three years. During our partnership, we worked closely with ABRA’s exceptional management team to enter new markets, accelerate the company’s acquisition program and enhance the company’s industry-leading capabilities. We are confident Hellman & Friedman will be an ideal partner in the next stage of the company’s development.”
The transaction is expected to close in the third quarter of 2014 and is subject to customary conditions.
Harris Williams & Co. acted as advisor to ABRA in connection with the transaction. Greenberg Traurig LLP and Simpson Thacher & Bartlett LLP served as legal advisors to ABRA and Hellman & Friedman, respectively.
About ABRA Auto Body & Glass
Founded in 1984, ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement with 186 company-owned vehicle damage repair centers and 48 franchised centers in 19 states. ABRA distinguishes itself by providing a solution that enables its insurance company partners to substantially improve customer satisfaction and drive policyholder retention, while simultaneously reducing repair costs and driving efficiencies in the claims management process. For more information about ABRA, visit www.abraauto.com.
About Hellman & Friedman, LLC.
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York, and London. Since its founding in 1984, H&F has raised and, through its affiliated funds, managed over $25 billion of committed capital. The firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including insurance, energy & industrials, financial services, software, internet, digital & traditional media, business, marketing & information services, and healthcare. For more information on H&F, please visit www.hf.com.
About Palladium Equity Partners, LLC.
Palladium is a middle market private equity firm with over $2.5 billion in assets under management. Palladium seeks to acquire and grow companies in partnership with founders and experienced management teams, and focuses primarily on buyout equity investments in the range of $50 to $150 million. Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. The principals of the firm have significant experience in financial services, business services, food, healthcare, industrial and media businesses, with a special focus on transitioning founder-owned businesses and investing in companies it believes will benefit from the growth in the U.S. Hispanic population. In April 2014, Palladium announced the final closing of Palladium Equity Partners IV, L.P. at $1.14 billion, significantly exceeding its target. Palladium is based in New York City. For more information, visit www.palladiumequity.com.